I understand that you are not defending him, but offering his justification. None the less....
People's expectations and biases might not always be rational, but they form the foundation of every purchase decision. With cars, for example, most people today understand that a typical car might well be made anywhere, and even if assembled in America it is tens of thousands of bits individually crafted across the globe, then shipped to America and pieced together. But that's only your typical car. Does that expectation and indifference extend to every vehicle?
Would the purchaser of a Ferrari accept the "location doesn't matter" excuse if he learned his supercar was assembled in Vietnam or perhaps India rather than a Ferrari plant in Italy? I suspect it might matter very much, just as it does here.
Going deeper, we cannot ignore the reasons WHY so many people will not deliberately do business with China, or purchase their products. Many people have strong moral convictions about this. And even if we ignore slavery and ra.pant human rights violations, we still have significant issues with quality. The people who contract bridges and skyscrapers out of pop metal and bubble wrap, who put melamine in baby formula to make it extra white, who ship toxic everything from dry wall to dog food, damn sure cant be trusted to care what steel goes into an pocket knife or how that steel is heat treated. Can China make good stuff? Perhaps. But they don't seem too concerned about it most of the time.
Anyway, I have rambled far enough, and everyone here already knows all this. And so does this Hoback guy. What he did to his customers is a disgrace.